Thoughts on the future of ChargePoint, the company that runs the charging stations
The past month has not been easy for electric charging station operator ChargePoint Holdings Inc. (CHPT). First, the company presented a quarterly report, which disappointed some investors. Later, several Wall Street analysts immediately worsened their recommendations regarding the operator. All this hurt the quotations of ChargePoint Holdings. However, at the end of June, more positive company assessments appeared, which helped regain some lost positions.
In the last 30 days, the CHPT stock has risen by almost 2% and was worth $12.69 at the auction on July 1. ChargePoint Holdings didn’t make as much money as Wall Street thought it would in the first quarter of its fiscal year, 2023. As a result, many investors preferred to sell shares. The decline in quotations by the comments of Citigroup, Piper Sandler, and Evercore also lowered their target prices. However, the statement from B. Riley analysts differed significantly from the previously presented estimates.
The company’s specialists, on the contrary, confirmed their recommendation to “buy” shares of ChargePoint Holdings and raised the target price to $20, which represents the potential for a twofold increase compared to the current price. After the publication of B. Riley’s valuation, some investors began to purchase company shares again, allowing the securities to compensate for some losses. Thus, ChargePoint Holdings’s claims remain volatile and highly dependent on the estimates provided by analysts on Wall Street. Probably, experts evaluate the company’s prospects differently. Those who expect rapid growth prefer to choose other securities.
Those who plan for the longer term see potential in ChargePoint Holdings. The rise in fuel price has attracted buyers’ attention to electric vehicles, especially given that there are models of different price categories on the market now. The more owners of electric cars, the greater the demand for charging stations, which is a favorable factor for ChargePoint Holdings. At the same time, this market is still in the initial stages of growth because charging station operators, such as ChargePoint Holdings, are not increasing revenue as quickly as some investors wish. As a result, the CHPT stock by volatility.
